Monetary policy transmission and debt accumulation in the euro area
Hasko, Harri (27.04.2012)
Volyymi
86Numero
1Julkaisija
Bank of Finland
2012
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:bof-201408073946Tiivistelmä
Prior to the escalation of the financial market crisis in 2008, nominal interest rates on household and corporate loans in the euro area were relatively uniform and closely followed the policy rates of the European Central Bank (ECB). In contrast, there have been major differences all along between euro area countries in respect of debt accumulation. The key explanatory factor for these differences was the faster rate of inflation in some peripheral countries. As a result, real interest rates in these countries were lower than elsewhere and debt accumulated more rapidly.